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in Chowchilla, CA
Chowchilla investors face a choice: DSCR loans for rental cash flow or hard money for quick acquisitions. Both skip W-2 income checks, but they solve different problems.
DSCR loans work when the property generates enough rent to cover its mortgage. Hard money works when you need fast funding and plan to refinance out within months.
DSCR loans qualify you based on rental income divided by the mortgage payment. A 1.0 ratio means rent covers the payment — most lenders want 1.1 to 1.25.
You get 30-year fixed terms with rates 1-2% above conforming. No tax returns, no W-2s, just an appraisal showing market rent and your credit score.
Minimum credit typically sits at 660. Down payments start at 20% for single-family rentals in Chowchilla, higher for multi-units or newer investors.
Hard money lenders fund based on the property's after-repair value, not your income or credit. They care about equity position and your exit plan.
Terms run 6 to 24 months with interest-only payments. Rates range from 8% to 12%, plus 2-4 points upfront — expensive, but fast.
You can close in 7-14 days on Chowchilla properties. Many lenders fund 70-80% of purchase price, sometimes including rehab costs in the loan.
DSCR loans give you 30 years to repay at predictable rates. Hard money gives you 12 months at rates double that — you're paying for speed and flexibility.
DSCR requires the property to cash flow from day one. Hard money doesn't care if it's vacant or needs a new roof — the after-repair value is what matters.
Credit matters for DSCR — 660 minimum, 700+ for best pricing. Hard money lenders look at credit but rarely decline deals over a 580 score if equity is strong.
Use DSCR loans when you're buying a rental that's already generating income in Chowchilla. The lower rate matters over 30 years, and you won't scramble to refinance in six months.
Use hard money when you're flipping, buying at auction, or need to close before another buyer beats you. The high cost is temporary if your exit is solid.
Most Chowchilla investors use both: hard money to acquire and renovate, then refinance into a DSCR loan once the property is stabilized and rented.
Most DSCR lenders require the property to be rent-ready at closing. Minor cosmetic work is fine, but major rehabs need hard money first.
Most hard money lenders accept 580+ credit if the deal has strong equity. Some approve lower scores with larger down payments or experienced borrowers.
DSCR loans go up to 80% LTV on single-family Chowchilla rentals. Hard money typically maxes at 75% of after-repair value, sometimes higher with rehab included.
Hard money closes in 7-14 days. DSCR loans take 30-45 days, similar to conventional financing timelines.
Yes, this is a common strategy. After rehabbing and leasing the property, refinance into a DSCR loan for long-term cash flow with lower rates.
No. DSCR loans qualify on rental income from an appraisal. Hard money lenders focus on property value and exit strategy, not personal income documentation.